Investors have never hated DroneShield more: the ASX stocks attracting more shorts

The ASX 200 may be lagging most major stock markets in 2026, but there's a sense things are actually worse. As my colleague Kerry Sun wrote, the ASX is flat but it still feels like a bear market. 

The reason is simple - most stocks are down more than 20% from their 52-week highs, and this is compounding the pain of an anaemic index-level performance for the ASX. 

And it's often the smaller, more speculative names that suffer in those times. That certainly seems to be the case when it comes to short sellers, who have recently been targeting some high-beta names across sectors.

But there's a few select stocks earning the most attention from short sellers, with three in particular seeing total short interest hover above 15%. 

1. Droneshield (ASX: DRO)

Droneshield tops the list of the most-shorted ASX stock, after falling for nine straight sessions in October, and dropping 22% to its lowest price in over a year. Total short interest now sits at 16.41%, a record high for the counter-drone technology company. 

The stock is now down 54% year-to-date, despite a recent update showing FY26 revenue hit $261 million, well within guidance and up 35% on FY26. 

It has been given a "Speculative Buy" rating by Canaccord Genuity, with a price target of $2.60. 

2. Boss Energy (ASX: BOE)

Uranium producer Boss Energy has also seen short interest tick up substantially in the last week, with a 1.83% jump to take total short interest to 14.86%. 

It is one of a handful of uranium stocks seeing increasing short interest despite uranium prices near US$100/lb against a macro backdrop that is proving difficult for the smaller end of the stock market where many of these companies reside. 

Boss is rated a Buy according to Market Index's Broker Consensus tool, with upside potential of 33%.

3. Lotus Resources (ASX: LOT)

Another uranium producer that's no stranger to the list of most-shorted stocks, Lotus has long been the target of short sellers after a disastrous year. 

While short interest has ticked back up over the last week by 1.29%, total short interest is down 1.4% month-on-month after peaking above 20%. 

The stock is back trading after a trading halt back in June and July, but is down 89% over the last 12 months.